JPMorgan (JPM, Financial) released its third-quarter earnings report, revealing a forecast for net interest income (NII) of approximately $87 billion for the fiscal year 2025. Chief Financial Officer Jeremy Barnum acknowledged the ambitious nature of this projection but asserted its feasibility. However, Chairman and CEO Jamie Dimon expressed concerns about the focus on NII, suggesting that the final figure might be slightly lower, and emphasizing the importance of growth over NII predictions.
The company's guidance anticipates a fourth-quarter NII of $22.9 billion, down from the third-quarter's $23.4 billion. Barnum attributed the projected quarter-over-quarter decline primarily to yield curve factors. He indicated a potential continuous decline in NII through next year, potentially bottoming out in mid-2025 due to the yield curve's influence.
During the earnings call, Dimon emphasized JPMorgan's strategy for growth, which includes hiring more private bankers and investing in artificial intelligence technologies. He described these expenditures as investments with long-term payoffs aimed at increasing market share. Dimon also highlighted the importance of cash as a valuable asset amid global uncertainties.
